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WG Wearne sells 60% of noncore sand quarry for R7m

4th April 2017

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

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JSE-listed WG Wearne has entered into an agreement with Elcu Pumps to sell a 60% stake in its noncore Brandvlei sand quarry and ancillary business for R7-million.

Upon completion, the Brandvlei asset will be 40% owned by WG Wearne and 60% by Dennis Human and other investors, including a staff member of WG Wearne’s designated adviser Exchange Sponsors, under a contract mining agreement.

Wearne will then enter a supply agreement in terms of which the buyer will supply the total requirement of plaster sand to some of WG Wearne’s ready-mix plants.

WG Wearne will use the proceeds to reduce debt and improve the liquidity position of the group in general.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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